Internal Ref: Constr 25
Summary
Industrial Building Specialist in a niche with a new approach to construction. Risks in expenses incurred in plant, rent and wages minimised and profits maximised. Unique. EBITDA $1,000,000
Revenue
$4,900,000 pa
Net Profit
$1,000,000 pa
Location Details
Head office in Brisbane. It undertakes work in Queensland and has completed major projects interstate.
Potential
Excellent prospects.
Progressing to an undermanagement operation.
Demand outstripping supply for industrial building brought on by:
Population growth;
Low industrial vacancy rates;
Shortage of industrial leasing space;
Rental increases seen rising 13% to 20%; and
Olympics in 7 years.
Hours
Normal business hours
Employees
Full time employees in design, engineering, construction and project management roles. Engages sub contractors to work under supervision
Reason for Sale
Retirement of some of the ownership partners.
About the Business
This is not a traditional construction company with extensive plant and equipment and fabrication workshops. It has recognised that these capabilities detract from being a construction company and more a fabrication company that constructs buildings.
It targets that segment of the industry where client requires floor areas with minimal columns. It has expertise and IP in this segment which covers transport & logistics, manufacturing & workshops, machinery and maintenance sheds, waste storage, aircraft hangars, equestrian arenas, stables, agricultural sheds, covered sports outdoor learning facilities etc.
It recognises that there are increased risks to profitability through exposure to the decisions of 3rd parties it cannot control from suppliers, landlords, labour costs and government regulations.
It recognises that a predictable, steady, controllable income stream for work year in year out is the essential to success. It has developed that capability where the application of its accredited systems and processes has consistently delivered it cica $1,000,000 EBITDA annually and at high ratio to sales.
It is a 'smart' company, operating with positive cashflows and minimal risks to its profitability.
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